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Stock Market Basics: Start Here

8 guides on what a stock is, how prices move, and how the market works

A share of stock is a slice of a real company, and almost everything else in investing builds on that one idea. These eight guides cover the foundations: what you actually own when you buy a share, how a price gets set between buyers and sellers, when the US market is open and what happens outside those hours, how companies are sorted into sectors, what bull and bear markets mean, why a company splits its shares, and how index funds and ETFs let you own hundreds of companies at once.

Start anywhere. If a term stops you, the stock market glossary has a plain-English definition - market capitalization is a good first one, because it explains why a $200 share price tells you almost nothing about how big a company is.

Everything here can be practiced in CustomStocks with a virtual balance and real market prices. It is an educational simulator, not a brokerage, and nothing on this site is financial advice.

Start With the Foundations

Eight guides, roughly in the order they build on each other.

Beginner

What Is a Stock?

What a stock really is, how shares and ownership work, the two ways you make money, and why prices move - explained in plain English for total beginners.

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Beginner

What Is a Stock Split?

How forward and reverse splits work, why companies split their shares, and why the total value of your holding stays the same.

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Beginner

Index Funds and the S&P 500

What an index fund is, how the S&P 500 works, and why low-cost index investing gives beginners instant diversification - practiced risk-free.

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